Retail sportswear rally up due FIFA World Cup in June: BRC
12 Jul '06
3 min read
British Retail Consortium released the retail sales for June 2006.
Highlights: - Retail sales in the UK during June rose 2.3 percent on a like-for-like basis, against a weak comparative in June 2005, when sales had dropped 0.5 percent.
- The three-month trend rate of growth rose to 4.1 percent in June from 2.7 percent in May for like-for-like sales, and to 6.8 percent from 5.6 percent total sales, reflecting the continued growth of retail space.
- The World Cup hit footfall on days when England played, but also boosted sales of beer, large TVs, sportswear and food. Hot weather also helped food, DIY and gardening, but clothing and footwear dropped back after May's modest improvement.
- With consumers still pessimistic about personal finances and reluctant to commit to major purchases, housing-related and big-ticket items remained largely discount-driven.
Kevin Hawkins, Director General, BRC comments: “Despite the boost from the World Cup, warmer weather, and some early clearance sales, June was not as good as May. Also this performance is being compared with a weak June 2005. Although the gain is indeed encouraging, much of the growth, especially in housing-related sectors, remains discount-driven. Consumer confidence is still fragile and retailers will be hoping factors beyond their control do not weaken it further.”
Helen Dickinson, Head of Retail, KPMG comments: “Enhanced food and drink sales on the back of the World Cup have been the driving force behind the June sales performance. Our ability to enjoy the 'festival of football' has offset any downside arising from lower customer traffic in key centres during the high interest matches.”
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